Toward the attainment of enhancing market performance and returns for investors
Large-cap mutual funds are preferred by investors who are targeting both stability and absolute return that’s why it’s considered to be a wise decision. Large-cap funds mainly target financially strong and stable giant companies with market capitalization above $10,000 million. These are big and well-established firms classified under the new economy firms, also known as blue chip companies since they provide fairly good and high returns. Focusing on five large-cap mutual funds in India, this article aims to identify what mutual funds have provided the highest returns for investors, concluded after a comprehensive study of the performance of such mutual funds in the past five to ten years.
Best Large-Cap Mutual Funds India
1. SBI Blue Chip Fund
In the large-cap segment, which is so far the most active, SBI Blue Chip Fund is sincerely one of the best performers. This fund is managed by one of the leading and most reliable financial organizations of India, and their results are rather stable and high. Especially, it has had such fantastic growth during the last ten years that it has become a more attractive instrument for long-term investors who are searching for capital gains.
Performance and Strategy
Historical Returns: In the last ten years, SBI Blue Chip Fund has accrued returns of almost 12-15% per year.
Investment Strategy: The fund mainly covers large-cap stocks with a growth and quality factor, providing diversified and sustainable business development opportunities.
Top Holdings: Some of the major stakes invested are HDFC Bank Ltd, Reliance Industries Ltd, Infosys Ltd, TCS, etc., all of which are market gurus of India.
2. HDFC Top 100 Fund
There is also the HDFC Top 100 Fund which is one of the top-performing mutual fund houses investors prefer, given that it targets blue-chip stocks. This fund has been ranked high as it is operated by HDFC Mutual Fund, one of the leading asset management firms in India while there is evidence that this fund remains robust and performs well during bear runs.
Performance and Strategy
Historical Returns: The fund has offered an average of 11-14% annually during the ten-year period in context from 2008 to 2018.
Investment Strategy: It’s centered on a large-capitalization equity platform with a combined growth/ value strategy.
Top Holdings: Some of the biggest firms that are included in the portfolio of this fund are ICICI Bank, Tata Consultancy Services, and Larsen & Toubro.
3. ICICI Prudential Bluechip Fund
ICICI Prudential Bluechip Fund has been in the limelight for various reasons especially the disciplined approach towards investments and good track record. Known by the name ICICI Prudential Mutual Fund Management, this fund has gradually turned out be popular for those investors who plan or seek safety and growth in their funds.
Performance and Strategy
Historical Returns: The fund has provided an expected overall return of approximately 10-13% per annum in the last one decade.
Investment Strategy: It focuses on identifying stocks with strong earnings per share, return on equity, and return on assets, as well as established industry dominance or long-term niche-growth prospects.
Top Holdings: Larger holdings consist of consumer goods such as Hindustan Unilever, the banking and financial service industry’s HDFC Bank and the telecommunications industry’s Bharti Airtel.
4. Spectrum of funds of the Aditya Birla Sun Investment Managers comprising of Aditya Birla Sun Life Frontline Equity Fund
The Aditya Birla Sun Life Frontline Equity Fund is known to have achieved rather stable rankings over several years that can be expected from a range of blue-chip stocks. This fund is currently managed by Aditya Birla Sun Life Mutual Fund and has largely been a strong contender in the large-cap bracket.
Performance and Strategy
Historical Returns: Getting back to the information regarding the fund, the reader should know that it has provided average annualized returns within the range of 11 – 14 % during the last decade.
Investment Strategy: Some key features of this fund are that it operates on the principles of the ‘Growth at a Reasonable Price’ model, which means that it is based on a bottom-up stock-picking strategy, and firms in the portfolio need to be fundamentally sound and possess the potential for growth.
Top Holdings: Out of the top illustrated sectors, it invests heavily in Infosys, Reliance Industries and HDFC Bank.
5. Large cap funds such as Mirae Asset Large Cap Fund are preferred due to their slightly higher returns than that of large caps as a whole
The following are some of the reasons why the Mirae Asset Large Cap Fund has gained popularity due to its good returns as well as its ability to invest in top-notch large-cap stocks. It is very popular among investors because of its excellent performance as compared to other funds of this type and is managed by the Mirae Asset Mutual Fund.
Performance and Strategy
Historical Returns: Based on the past ten years the fund has generated growth rates of 12-15 percent per year.
Investment Strategy: It centers on the value Maverick Capital employed, which is a growth investment strategy; therefore, it invests in firms it believes will generate significant earnings.
Top Holdings: Some key holdings are HDFC Bank, Reliance Industries Ltd, Infosys Limited and some blue chip stocks such as ICICI Bank.
Analysis of Performance Metrics
When evaluating the performance of these large-cap mutual funds, several key metrics and factors come into play:
Annualized Returns: Figures revealed in the yearly performances, compounded at annual rates for the five and the ten years testify to the steady generational returns of the fund.
Portfolio Composition: The distributed focus belongs to the top holdings of these funds and consists of blue-chip companies that are market leaders, demonstrating considerable financial stability.
Investment Strategy: The quotas of these funds are mostly oriented at the second and the third approaches to investment, this is the mixture of growth and value investment, firms with sound economic profiles and defensible competitive positions and good appreciation potential.
Fund Management: Perhaps the most important factor that goes into the management of these funds is the expertise and skills that fund managers would bring to the table in terms of investment decisions made after carrying out extensive research and analysis of the markets.
Conclusion
The large-cap mutual fund can be deemed as a perfect option for investors who tend to select conservative and long-term investments. As seen in this article, the five large-cap mutual funds that investors should consider right now are SBI Blue Chip Fund, HDFC Top 100 Fund, ICICI Prudential Bluechip Fund, Aditya Birla Sun Life Frontline Equity Fund, and Mirae Asset Large Cap Fund as these are the most popular and high-returning funds in the market. These specialized funds thus provide a promising investment opportunity in the Indian market by combining their strategic investment approaches that mainly focus on blue chip stocks as well as their focus on economical stocks with strong fundamentals.
